PayPal’s PYUSD Goes Interstellar: Stellar Integration Opens Floodgates for Crypto Adoption

PayPal just fired the starting pistol for the next phase of stablecoin wars—by launching PYUSD on Stellar's lightning-fast blockchain.

The move turns the payments giant into a cross-chain player overnight, while giving crypto natives one less excuse to dismiss 'corporate coins.'

Why This Matters

Stellar's rails process payments in seconds for fractions of a cent—making it a natural fit for PYUSD's ambitions to dominate everyday spending. Now merchants can settle in stablecoins without getting rekt by Ethereum gas fees.

The Fine Print

PYUSD still trails USDC and USDT in market share (because apparently the crypto crowd trusts Circle and Tether more than a NASDAQ-listed company). But with PayPal's 400M+ users now getting exposure to Stellar's ecosystem, that could change faster than a degenerate flips a shitcoin.

Bottom Line

Another brick in the wall of crypto going mainstream—though Wall Street will still find a way to charge 2% fees for 'safely custodying' your digital dollars.

$2,949 and Solana$162. This step is particularly noteworthy for Stellar’s native token, XLM, which has been overshadowed lately. The recognition of XLM as the third altcoin to support PYUSD may reignite interest and increase visibility for the cryptocurrency that often competes with XRP Coin.

ContentsStellar (XLM) and PayPalXLM Coin

Stellar (XLM) and PayPal

PayPal representatives have highlighted Stellar’s low-cost and high-speed payment infrastructure as a significant advantage. The integration of stellar aims to make PYUSD more accessible and useful, allowing users to engage more effortlessly in daily transactions, international money transfers, and financial services. As a part of this evolution, PYUSD’s support is expected to play a crucial role, especially in business finance and small business loans.

Stellar’s existing global payment infrastructure, spanning digital wallets and local payment systems across numerous countries, promises to extend PYUSD’s reach to over 170 countries. PayPal asserts that the integration will enable a broader audience to utilize PYUSD through the Stellar network.

XLM Coin

With the expansion of PYUSD on Stellar, PayPal mentions the potential for services like PayFi to leverage this digital financing wave. This WOULD provide businesses the capability to work with PYUSD in real-time, supporting swift and cost-effective cross-border payments. PayPal contends that such integration will advance blockchain use in cross-border financial transactions.

May Zabaneh, Vice President of Digital Currency at PayPal, mentioned that this partnership could advance blockchain usage across borders.

Denelle Dixon, CEO of the Stellar Development Foundation, believes PYUSD could offer tangible benefits to emerging markets and small businesses through Stellar.

XLM experienced significant price fluctuations over the past 24 hours, trading between $0.345 and $0.416, reflecting a 20.5% volatility. While the overall recovery of market sentiment supported its rise, PayPal’s announcement added an additional boost.

As XLM approached its resistance levels, encountering profit-taking from institutions around $0.400-$0.403, trading volume notably exceeded the average in recent hours, suggesting a surge in investor interest.

PayPal’s plan to offer PYUSD via Stellar could set a precedent for using digital currencies across various blockchain infrastructures. Systems like PayFi providing instant financing options could facilitate liquidity access, especially for small businesses and cross-border transactions. PYUSD’s cash-backed model enhances user confidence, and future developments in blockchain-based payments promise greater speed, cost-effectiveness, and widespread adoption.

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